Revised defence procurement procedure from April: Antony

Indo Asian News Service

31 January 2013

New Delhi, Jan 31 (IANS) Defence Minister A.K. Antony Thursday said the revised defence procurement procedure (DPP) would come into force from April and urged private and public sector companies to shed "miserly attitude" towards spending on research and development of defence equipment.

Terming India's defence procurement procedure "dynamic", Antony said: "(We) Will be able to introduce the revised DPP April onwards."

He said efforts were made to bring "accountability and transparency" in the revised DPP and emphasis was on technology transfer to boost indigenisation.

Seeking more investment from companies on research and development to realise the aim of faster indigenisation, the defence minister said: "Except few (companies), budget for research and development of many is not enough."

Antony was speaking at NAVARMS-2013, an international seminar-cum-exhibition on naval armament.

Among the defence forces, he said, the navy had made sustained efforts towards indigensation.

"Navy's focus on self-reliance has opened a host of opportunities for the (Indian) industry," he said.

Antony said the government was trying to meet objectives of defence forces of acquiring world-class armaments and expanding the Indian defence industry.

Describing offsets as an integral part of the country's policy to promote indigenisation, he said the government had been keen on encouraging the industry to realign its business processes for strategic alliances and joint ventures.

He said the Indian industry was at the threshold of becoming a global player in the field of information and communication technology, engineering and manufacturing.

The country's defence sector is open to Indian private sector for 100 percent participation. Foreign direct investment is permissible up to 26 percent.

The minister hoped the Indian industry would gradually assume the role of system integrator and manufacturer of complete defence equipment and systems.

"This provides a major shift in the role of private sector in India," he said.

Indian Navy chief Admiral D.K. Joshi said the force was undertaking capability-based reconstruction plan to keep up high level of deterrence against potential misadventure.

He said it was important to make timely inductions to maintain "cutting-edge" of the force.

Admiral Joshi said indigenisation levels were low in high-end technology areas such as armament control systems and added that Indian industry should utilise the opportunities created through defence offsets.

Nikhil Gandhi, chairman, CII Defence Core Group on Strategic Projects, said a strong defence industrial base with the active involvement of private sector would fulfill requirements of the navy.

The third international seminar and exhibition on Naval Armaments was jointly organised by the Confederation of Indian Industry (CII) and the Indian Navy.